2007 Legislation
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HOUSE BILL NO. 198 – Housing/finance assn/economic dvlp


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Bill Status

H0198...............................................by REVENUE AND TAXATION
IDAHO HOUSING AND FINANCE ASSOCIATION - Amends existing law to enable the
Idaho Housing and Finance Association to permit financing of economic
development projects through the issuance of revenue bonds by the Idaho
Housing and Finance Association; and to provide for the financing of
industrial, commercial and other projects to promote economic development
throughout the state in partnership with private financial institutions and
state or local economic development entities.
02/14    House intro - 1st rdg - to printing
02/15    Rpt prt - to Rev/Tax
02/22    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
02/27    3rd rdg - PASSED - 66-0-4
      AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      Collins, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring,
      Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
      Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke, Crane, Edmunson, Wood(35)
    Floor Sponsor - Hart
    Title apvd - to Senate
02/28    Senate intro - 1st rdg - to Loc Gov
03/07    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/13    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Siddoway
    Title apvd - to House
03/14    To enrol
03/15    Rpt enrol - Sp signed - Pres signed
03/16    To Governor
03/22    Governor signed
         Session Law Chapter 152
         Effective: 03/22/07

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 198
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
 15        GENCY.
 16    Be It Enacted by the Legislature of the State of Idaho:
 17        SECTION 1.  That Section 67-6201, Idaho Code, be, and the same  is  hereby
 18    amended to read as follows:
 19        67-6201.  PURPOSE. It is hereby declared:
 20        (a)  That  within the state there is a shortage of safe or sanitary dwell-
 21    ing accommodations available which persons of low incomes can afford and  that
 22    such  persons are forced to occupy overcrowded and congested dwelling accommo-
 23    dations; that the aforesaid conditions cause an increase in and spread of dis-
 24    ease and crime, and constitute a menace to the health, safety, morals and wel-
 25    fare of the residents of the state and impair economic values; that these con-
 26    ditions necessitate excessive  and  disproportionate  expenditures  of  public
 27    funds  for crime prevention and punishment, public health and safety, fire and
 28    accident protection, and other public services and facilities.
 29        (b)  That private enterprise has not been able to provide, without  assis-
 30    tance,  an  adequate  supply of safe and sanitary dwellings at prices or rents
 31    which persons and families of low income can afford, or to achieve rehabilita-
 32    tion of much of the present low-income housing. It is imperative that the sup-
 33    ply of housing for persons and families of low income be  increased  and  that
 34    coordination and cooperation among private enterprise, state and local govern-
 35    ment  be encouraged to sponsor, build and rehabilitate residential housing for
 36    such persons and families.
 37        (c)  That the clearance, replanning and reconstruction  of  the  areas  in
 38    which unsanitary or unsafe housing conditions exist, and the providing of safe
 39    and  sanitary  dwelling  accommodations  for  persons  of  low  incomes (which
 40    dwelling-accommodations dwelling accommodations need not be solely for persons
 41    of low incomes in order to avoid concentrations of such  persons  in  specific
 42    localities), are public uses, and uses and purposes for which public money may
 43    be spent and private property acquired, and are governmental functions.
  1        (d)  It is also declared and the legislature hereby finds that charitable,
  2    educational,  human  service, cultural and other purposes pursued by nonprofit
  3    corporations are important public functions and public purposes that should be
  4    encouraged and that financing  of  nonprofit  facilities  for  these  purposes
  5    should  be  encouraged, without using state funds or lending the credit of the
  6    state, through the issuance of nonrecourse revenue bonds and  the  lending  of
  7    the proceeds thereof to nonprofit corporations to promote their purposes.
  8        (e)  It is further declared that in this state:
  9        (1)  There  exists  an inadequate supply of funds at interest rates suffi-
 10        ciently  low to enable persons engaged in agriculture in this state,  par-
 11        ticularly  beginning  farmers  and ranchers, to pursue agricultural opera-
 12        tions at present levels;
 13        (2)  That such inability to pursue  agricultural  operations  reduces  the
 14        supply  of  agricultural commodities available to fulfill the needs of the
 15        citizens of this state;
 16        (3)  That  such  inability  to  continue  operations  decreases  available
 17        employment in the agricultural sector of the state and  results  in  unem-
 18        ployment and its attendant problems;
 19        (4)  That  such  conditions prevent the acquisition of an adequate capital
 20        stock of farm and ranch equipment and machinery, therefore  impairing  the
 21        productivity of agricultural land;
 22        (5)  That  such  conditions  are  conducive to consolidation of acreage of
 23        agricultural land with fewer individuals living and farming  and  ranching
 24        on the traditional family farm and ranch;
 25        (6)  That  these  conditions  result in a loss in population, unemployment
 26        and movement of persons from rural to urban  areas  accompanied  by  added
 27        costs to communities for creation of new public facilities and services;
 28        (7)  That there have been recurrent shortages of funds from private market
 29        sources at reasonable rates of interest;
 30        (8)  That  these shortages have made the sale and purchase of agricultural
 31        land to beginning farmers and ranchers a  virtual  impossibility  in  many
 32        parts of the state;
 33        (9)  That  the  ordinary  operations of private enterprise have not in the
 34        past corrected these conditions; and
 35        (10) That a stable supply of adequate funds for agricultural financing  is
 36        required  to  encourage  beginning  farmers and ranchers in an orderly and
 37        sustained manner and to reduce the problems described herein.
 38        (f)  It is further declared that in this state there is an urgent need  to
 39    promote higher employment; encourage the development of new jobs; maintain and
 40    supplement  the  capital  investments  in industry and commerce that currently
 41    exist in this state; encourage future employment by  ensuring  future  capital
 42    investment;  attract environmentally sound industry and commerce to the state;
 43    protect and enhance the quality of natural resources and the environment;  and
 44    promote  the production and conservation of energy; and that financing of eco-
 45    nomic development projects in partnership with private financial  institutions
 46    and  state or local economic development entities for these purposes should be
 47    encouraged, without using state funds or  lending  the  credit  of  the  state
 48    through  the issuance of nonrecourse revenue bonds and the lending of the pro-
 49    ceeds thereof for such purposes.
 50        (g)  It is hereby further declared that:
 51        (1)  The growth of the economy of this state has prompted  new  and  ever-
 52        increasing uses of public highways, roads, and other transportation infra-
 53        structure,  and  the  existing transportation infrastructure of this state
 54        cannot adequately accommodate such greatly increased uses;
 55        (2)  One of the major concerns of the citizens of this state is the  abil-
  1        ity  of  the  state to address the long-term transportation infrastructure
  2        needs of this state that are critical  to  the  continued  growth  of  the
  3        state's economy and the maintenance of citizens' quality of life;
  4        (3)  Utilizing  bonds  or notes to finance projects for transportation in-
  5        frastructure results in significant cost savings to the state, since  such
  6        transportation  projects  can  be completed at present day costs and at an
  7        accelerated pace, but such bonds and notes need  to be issued promptly  in
  8        order to realize these cost savings; and
  9        (4)  It is reasonable and necessary to utilize such bonds or notes for the
 10        financing of transportation projects.
 11        (gh)  It  is  hereby further declared that all of the foregoing are public
 12    purposes and uses for which public moneys may be borrowed, expended or granted
 13    and that such activities are governmental functions and serve a public purpose
 14    in improving or otherwise benefiting the people of this state; that the neces-
 15    sity of enacting the provisions hereinafter set forth is in the public  inter-
 16    est  and  is  hereby so declared as a matter of express legislative determina-
 17    tion.
 18        SECTION 2.  That Section 67-6205, Idaho Code, be, and the same  is  hereby
 19    amended to read as follows:
 20        67-6205.  DEFINITIONS.  The  following terms, wherever used or referred to
 21    in this chapter, shall have the following respective meanings, unless  a  dif-
 22    ferent meaning clearly appears from the context:
 23        (a)  "Association"  or  "housing association" shall mean the Idaho housing
 24    and finance association created by section 67-6202, Idaho Code.
 25        (b)  "Housing project" shall mean any work or undertaking:
 26        (1)  To demolish, clear or remove buildings from any slum area; such  work
 27        or  undertaking  may embrace the adoption of such area to public purposes,
 28        including parks or other recreational or community purposes; or
 29        (2)  To construct, sell, lease, finance,  improve,  operate  or  otherwise
 30        provide  decent, safe and sanitary urban or rural dwellings, apartments or
 31        other living accommodations for persons of low income; such work or under-
 32        taking may include buildings, land, equipment, facilities and  other  real
 33        or personal property which are necessary, convenient or desirable appurte-
 34        nances,  such  as,  but  not  limited  to, streets, sewers, water service,
 35        parks, site preparation,  gardening,  administrative,  community,  health,
 36        recreational, and welfare or other purposes; or
 37        (3)  To accomplish a combination of the foregoing. The term "housing proj-
 38        ect"  also  may  be  applied to the planning of the buildings and improve-
 39        ments, for either single or multi-family housing, the acquisition of prop-
 40        erty, the demolition of existing structures, the construction, reconstruc-
 41        tion, rehabilitation, alteration and repair of the buildings and  improve-
 42        ments and all other work in connection therewith.
 43        (c)  "Governing body" shall mean the city council, board of commissioners,
 44    board  of  trustees  or  other body having charge of the locality in which the
 45    association desires to undertake a housing project.
 46        (d)  "Federal government" shall include the United States of  America,  or
 47    any  other  agency  or  instrumentality, corporate or otherwise, of the United
 48    States of America.
 49        (e)  "City" shall mean any city in the state of Idaho, including each city
 50    having a special charter.
 51        (f)  "County" or "counties" shall include all counties  in  the  state  of
 52    Idaho as designated in chapter 1, title 31, Idaho Code.
 53        (g)  "Clerk" shall mean the clerk of the city or county as the case may be
  1    or the officer charged with the duties customarily imposed on such clerk.
  2        (h)  "Area of operation" shall mean the state of Idaho.
  3        (i)  "Slum" shall mean any area where dwellings predominate which, by rea-
  4    son  of  dilapidation,  overcrowding,  lack  of ventilation, light or sanitary
  5    facilities or any combination of these factors,  are  detrimental  to  safety,
  6    health or morals.
  7        (j)  "Person  of  low-income"  means  persons  deemed  by the association,
  8    including those defined as "elderly" in the United States Housing Act of  1937
  9    [42  U.S.C.,  sec.  1437--1437dd  et  seq.], as amended, to require assistance
 10    available under this act on account of insufficient personal or family income,
 11    to pay the rents or carrying charges required by the unaided operation of pri-
 12    vate enterprise in providing an adequate supply of decent, safe  and  sanitary
 13    housing  and in making such determination the association shall take into con-
 14    sideration, without limitation, such factors as:
 15        (1)  The amount of the total income of such persons available for  housing
 16        needs;
 17        (2)  The size of the family;
 18        (3)  The cost and condition of housing facilities available;
 19        (4)  Standards established for various federal programs determining eligi-
 20        bility based on income of such persons; and
 21        (5)  The  ability  of  such  persons to compete successfully in the normal
 22        housing market and to pay the amounts at which private enterprise is  pro-
 23        viding decent, safe and sanitary housing.
 24        (k)  "Bonds,"  "notes"  or  "bond  anticipation  notes," and "obligations"
 25    shall mean any bonds, notes, interim certificates, debentures  or  other  evi-
 26    dences  of  financial  indebtedness issued by the association pursuant to this
 27    chapter.
 28        (l)  "Real property" shall include all lands, including  improvements  and
 29    fixtures  thereon, and property of any nature, appurtenant thereto, or used in
 30    connection therewith, and every estate, interest and right, legal  or  equita-
 31    ble, therein, including terms for years and liens by way of judgment, mortgage
 32    or otherwise and the indebtedness secured by such liens.
 33        (m)  "Housing  authority"  or "authority" means a housing authority estab-
 34    lished pursuant to the "housing authorities and cooperation law"  constituting
 35    chapter 19, title 50, Idaho Code.
 36        (n)  "Rent" shall mean the periodic payment made by a person of low-income
 37    in  a  housing  project  whether  such money is being used as rent, or for the
 38    development of equity by such person.
 39        (o)  "Interim financing" means a short-term construction loan for planning
 40    and/or development of residential housing for persons of low-income and  other
 41    persons which loan shall run until financing can be assumed through other fed-
 42    eral, state or private financing.
 43        (p)  "Housing  sponsor"  means  individuals, joint ventures, partnerships,
 44    limited partnerships, public bodies, trusts,  firms,  associations,  or  other
 45    legal entities or any combination thereof, and corporations, cooperatives, and
 46    condominiums,  approved  by  the  association as qualified either to own, con-
 47    struct, acquire, rehabilitate, operate, manage or maintain a housing  project,
 48    subject to the regulatory powers of the association and other terms and condi-
 49    tions  set  forth  in  this  chapter.  A  "housing  sponsor" shall be either a
 50    "limited profit" sponsor or a "nonprofit" sponsor.
 51        (q)  "Mortgage lender" means any bank  or  trust  company,  savings  bank,
 52    mortgage company, mortgage banker, credit union, national banking association,
 53    savings  and  loan  association, building and loan association, life insurance
 54    company, and any other financial institution authorized to  transact  business
 55    in the state.
  1        (r)  "Mortgage  loan"  means  an  interest-bearing obligation secured by a
  2    deed  of trust, a mortgage, bond, note, or other instrument which is a lien on
  3    property in the state except in the case of loans insured by the federal hous-
  4    ing administration or the association and which are made for  the  rehabilita-
  5    tion  or improvement of existing dwellings; in such case the loans need not be
  6    secured by an instrument constituting a lien on property in the state.
  7        (s)  "Mixed income housing project" means a housing project which contains
  8    dwellings occupied or to be occupied by persons of low-income constituting  at
  9    least twenty percent (20%) of such occupancy.
 10        (t)  "Facilities"  means  land,  rights  in  land,  buildings, structures,
 11    equipment, landscaping, utilities, approaches, roadways and parking,  handling
 12    and  storage areas, and portions of any of the foregoing and similar ancillary
 13    facilities.
 14        (u)  "Nonprofit corporation" means a nonprofit corporation  organized  and
 15    operating  in  accordance  with Idaho law or a nonprofit corporation organized
 16    and operating in accordance with comparable laws within another state or  ter-
 17    ritory of the United States.
 18        (v)  "Nonprofit  facilities" means facilities owned or used by a nonprofit
 19    corporation for a nonprofit purpose of the corporation; provided that  facili-
 20    ties  for  health facilities which may be funded pursuant to chapter 14, title
 21    39, Idaho Code, shall not be included in  this  definition,  except  for  such
 22    health  facilities as may be specifically approved by the Idaho health facili-
 23    ties authority. Facilities owned or used, consistent with its  nonprofit  pur-
 24    pose,  by  a nonprofit corporation recognized by a state institution of higher
 25    education as its college or university foundation  shall  be  considered  non-
 26    profit facilities under this chapter.
 27        (w)  "Project costs of a nonprofit facility" means costs of:
 28        (1)  Acquisition,  construction and improvement of any facilities included
 29        in a nonprofit facility;
 30        (2)  Architectural, engineering, consulting, accounting  and  legal  costs
 31        related  directly to the development, financing and construction of a non-
 32        profit facility, including costs of studies assessing the feasibility of a
 33        nonprofit facility;
 34        (3)  Finance costs, including discounts, if  any,  the  costs  of  issuing
 35        bonds, and costs incurred in carrying out any provisions thereof;
 36        (4)  Interest  during  construction  and  during  the six (6) months after
 37        estimated completion of construction,  and  capitalized  debt  service  or
 38        repair and replacement or other appropriate reserves;
 39        (5)  The  refunding of any outstanding obligations incurred for any of the
 40        costs outlined in this subsection; and
 41        (6)  Other costs incidental to any of the costs listed in this section.
 42        (x)  "Agricultural facility or facilities" means  land,  any  building  or
 43    other  improvement  thereon  or  thereto, to be owned by a beginning farmer or
 44    rancher and any personal properties deemed  necessary  or  suitable  for  use,
 45    whether  or  not  now  in  existence in farming or ranching, the production of
 46    agricultural commodities, including, without limitation, the products of aqua-
 47    culture, hydroponics and silviculture, or the treating, processing or  storing
 48    of  such agricultural commodities when such activities are customarily engaged
 49    in by beginning farmers or ranchers as a part of farming or ranching.
 50        (y)  "Municipality" means any county, municipal corporation, highway  dis-
 51    trict, taxing district or other political subdivision of this state.
 52        (z)  "State" means the state of Idaho.
 53        (aa) "State body" means any department, board, commission or agency of the
 54    state of Idaho.
 55        (bb) "Transportation  board"  means the Idaho transportation board and its
  1    successors.
  2        (cc) "Transportation department" means the Idaho transportation department
  3    and its successors.
  4        (dd) "Transportation  project"  means  any  transportation  infrastructure
  5    project including, without limitation, a road, street, parkway,  right-of-way,
  6    bridge,  railroad  crossing,  drainage  structure, sign, guardrail, structure,
  7    interstate, surface, resurface, shoulder, roadside, or any other work, and any
  8    planning development, management and  construction  related  thereto,  all  as
  9    approved or recommended to the association by the transportation board.
 10        (ee) "Economic  development  project  or projects" means any commercial or
 11    industrial project including, without limitation, any manufacturing,  process-
 12    ing,  production,  assembly,  warehousing,  solid  waste disposal, recreation,
 13    office, research and development, energy or other business  project  owned  by
 14    one  (1)  or  more persons or other legal entities, any costs relating thereto
 15    including, without limitation, costs for buildings, land, equipment,  furnish-
 16    ings,  interest, costs of operation, financing, architectural, engineering and
 17    other professional costs and other related costs, as well as any working capi-
 18    tal costs or expenses for such businesses.
 19        SECTION 3.  That Section 67-6206, Idaho Code, be, and the same  is  hereby
 20    amended to read as follows:
 21        67-6206.  POWERS OF ASSOCIATION. The housing and finance association is an
 22    independent public body corporate and politic, exercising public and essential
 23    governmental functions, and having all the powers which are hereby declared to
 24    be  public  purposes  necessary  or convenient to carry out and effectuate the
 25    purposes and provisions of this act chapter, including the following powers in
 26    addition to others herein granted:
 27        (a)  To sue and to be sued; to have a seal and to alter the same at pleas-
 28    ure; to have perpetual succession; to make and  execute  contracts  and  other
 29    instruments necessary or convenient to the exercise of the powers of the asso-
 30    ciation; and to make and from time to time amend and repeal bylaws, rules, not
 31    inconsistent  with  this act chapter, to carry into effect the powers and pur-
 32    poses of the association.
 33        (b)  To conduct its operations within any or all of the  counties  of  the
 34    state.
 35        (c)  To  cooperate with housing authorities throughout Idaho in the devel-
 36    opment of housing projects.
 37        (d)  To assign priorities for action and revise or modify said  priorities
 38    from time to time.
 39        (e)  To  make and execute agreements, contracts and other instruments nec-
 40    essary or convenient in the exercise of the powers and functions of the  asso-
 41    ciation  under this act chapter, including contracts with any housing sponsor,
 42    mortgage lender, person, firm,  corporation,  governmental  agency,  or  other
 43    entity; and to include in any contract let in connection with a project, stip-
 44    ulations  requiring  that  the  contractor  and any subcontractors comply with
 45    requirements as to minimum wages and maximum hours of labor, and  comply  with
 46    any conditions which the federal government may have attached to its financial
 47    aid  of the project and to designate mortgage lenders to act for and in behalf
 48    of the association, with respect to originating or  servicing  and  processing
 49    mortgage  loans of the association, and to pay the reasonable value of service
 50    rendered to the association by such mortgage  lenders  pursuant  to  contracts
 51    with mortgage lenders.
 52        (f)  To  lease,  sell, construct, finance, reconstruct, restore, rehabili-
 53    tate, operate or rent any housing projects, nonprofit facilities or any dwell-
  1    ings, houses,  accommodations,  lands,  buildings,  structures  or  facilities
  2    embraced  in  any  housing project or nonprofit facilities and, subject to the
  3    limitations contained in this act chapter, to establish and revise  the  rents
  4    or charges therefor.
  5        (g)  To  own,  hold  and  improve  real or personal property; to purchase,
  6    lease, obtain options upon, acquire by gift, grant, bequest,  devise,  eminent
  7    domain or otherwise, any real or personal property or any interest therein.
  8        (h)  To  acquire  any  real  property; to sell, lease, exchange, transfer,
  9    assign, pledge or dispose of any real or personal  property  or  any  interest
 10    therein.
 11        (i)  To  insure or provide for the insurance of any real or personal prop-
 12    erty or operation of the association against any risks or hazards, and to pro-
 13    cure or agree to the procurement of insurance or guarantees from  the  federal
 14    government  or  other source for the payment or purchase of any bonds or parts
 15    thereof issued by the association, including the power to  pay  for  any  such
 16    insurance or guarantees.
 17        (j)  To  invest  any funds held in reserves or sinking funds, or any funds
 18    not required for immediate disbursement, in property or securities in which  a
 19    bank,  as  defined in the "bank act," title 26, Idaho Code, may legally invest
 20    funds including without limitation, to agree to purchase  the  obligations  of
 21    any federal, state or local government upon such conditions as the association
 22    may determine to be prudent and in its best interest.
 23        (k)  Within  its  area  of operation: to investigate into living, dwelling
 24    and housing conditions and into the means and methods of improving such condi-
 25    tions; to determine where slum areas exist or where there  is  a  shortage  of
 26    adequate, safe and sanitary dwelling accommodations for persons of low-income;
 27    to  make  studies  and  recommendations  relating  to the problem of clearing,
 28    replanning and reconstruction of slum  areas  and  the  problem  of  providing
 29    dwelling  accommodations  for persons of low-income, and to cooperate with the
 30    city, the county, the state or any political  subdivision  thereof  in  action
 31    taken in connection with such problems; and to engage in research, studies and
 32    experimentation on the subject of housing.
 33        (l)  To  participate  in cooperative ventures with any agencies, organiza-
 34    tions and individuals in order to undertake the provision of housing for  per-
 35    sons  of  low-income, to undertake the provision of nonprofit facilities, eco-
 36    nomic development projects or agricultural facilities.
 37        (m)  To provide research and technical assistance  to  eligible  agencies,
 38    organizations  and  individuals  eligible  to  develop low cost housing and to
 39    research new low cost housing development and construction methods.
 40        (n)  To make and undertake commitments to make or participate in the  mak-
 41    ing  of  mortgage  loans  to  persons  of  low-income and to housing sponsors,
 42    including without limitation federally insured mortgage  loans,  and  to  make
 43    temporary  loans  and  advances  in anticipation of permanent loans to housing
 44    sponsors; said mortgage loans to housing sponsors shall be made to finance the
 45    construction, improvement, or rehabilitation of housing projects  for  persons
 46    of  low-income, and/or mixed income housing projects upon the terms and condi-
 47    tions set forth in this act chapter; provided, however, that such loans  shall
 48    be made only upon the determination by the association that mortgage loans are
 49    not  otherwise available, wholly or in part, from private lenders upon reason-
 50    ably equivalent terms and conditions.
 51        (o)  To purchase, or make commitments to purchase or  participate  in  the
 52    purchase  of  mortgage  loans from mortgage lenders which loans have been made
 53    for the construction, improvement, or rehabilitation of housing  projects  for
 54    persons of low-income and/or mixed income housing projects or loans which have
 55    been  made  to  persons  of low-income for residential housing, upon terms set
  1    forth in this act chapter; provided, however, that any such purchase shall  be
  2    made only upon the determination by the association that the mortgage loans to
  3    be  made  are  not  otherwise  being  made by mortgage lenders upon reasonably
  4    equivalent terms and conditions. Also, to purchase,  or  make  commitments  to
  5    purchase  or participate in the purchase of mortgage loans from mortgage lend-
  6    ers whether or not said loans were made to persons of low-income,  upon  terms
  7    set  forth in this act chapter; provided, however, that the proceeds from such
  8    purchase or the equivalent thereof shall be reinvested in obligations  of  the
  9    association,  in  mortgage loans to persons of low-income or in mortgage loans
 10    for housing projects for persons of low-income  and/or  mixed  income  housing
 11    projects,  and  provided  that  any  such purchase shall be made only upon the
 12    determination by the association that the mortgage loans to be  made  are  not
 13    otherwise  being made by mortgage lenders upon reasonably equivalent terms and
 14    conditions.
 15        (p)  To provide interim financing for  housing  projects  including  mixed
 16    income housing projects approved by the association, provided that the associ-
 17    ation has determined that such financing is not otherwise available from mort-
 18    gage lenders upon reasonably equivalent terms and conditions.
 19        (q)  To prescribe rules and policies in connection with the performance of
 20    its functions and duties.
 21        (r)  To  do  all other things deemed necessary and desirable to accomplish
 22    the objectives of this act chapter.
 23        (s)  To borrow money and issue bonds and notes or  other  obligations,  to
 24    invest  the  proceeds  thereof  in any lawful manner and to fund or refund the
 25    same, and to provide for the rights of the holders of its obligations as  pro-
 26    vided in this act chapter and in connection therewith, to waive, by resolution
 27    or  other document of the association, the exemption from federal income taxa-
 28    tion of interest on any of the association's  obligations  under  existing  or
 29    future  federal  law and to establish, maintain and preserve the association's
 30    general obligation rating and any rating on its bonds, notes or other  obliga-
 31    tions.
 32        (t)  To receive and accept aid or contributions from any source.
 33        (u)  To employ architects, engineers, attorneys, accountants, housing con-
 34    struction  and  financial  experts  and  such  other advisors, consultants and
 35    agents as may be necessary in its judgment and to fix their compensation.
 36        (v)  To insure mortgage payments of any mortgage loan made for the purpose
 37    of constructing, rehabilitating, purchasing, leasing, or  refinancing  housing
 38    projects upon such terms and conditions as the association may prescribe.
 39        (w)  To  fix  and revise from time to time and charge and collect fees and
 40    charges in connection with loans made or other services provided by the  asso-
 41    ciation pursuant to this act chapter, and to make and publish rules respecting
 42    the making and purchase of mortgage loans.
 43        (x)  To organize a nonprofit corporation to assist the association in pro-
 44    viding for housing projects.
 45        (y)  To  enter  upon  and  inspect  any housing project, including housing
 46    projects undertaken by housing sponsors, for the purpose of investigating  the
 47    physical  and  financial  condition thereof, and its construction, rehabilita-
 48    tion, operation, management and maintenance, and  to  examine  all  books  and
 49    records  with  respect  to  capitalization,  income and other matters relating
 50    thereto.
 51        (z)  To order such alterations, changes or repairs as may be necessary  to
 52    protect  the  security  of  its investment in a housing project or the health,
 53    safety, and welfare of the occupants thereof.
 54        (aa) To make or purchase secured loans for the purpose of providing tempo-
 55    rary or permanent financing or refinancing of all or part of the project costs
  1    of any nonprofit facility, economic development project or agricultural facil-
  2    ity, including the refunding of  any  outstanding  obligations,  mortgages  or
  3    advances  issued,  made or given by any person for the project costs of a non-
  4    profit facility, economic development project or agricultural  facility;  pro-
  5    vided  that private financial institutions shall be involved in providing such
  6    financing for economic development projects, and further, that the association
  7    will work with private financial institutions  as  the  primary  or  preferred
  8    credit  enhancement  providers  if  credit  enhancement  is  needed  for  such
  9    financings,  and to charge and collect interest on the loans for the loan pay-
 10    ments upon such terms and conditions, including without limitation bond rating
 11    and issuance conditions, as the board  of  commissioners  considers  advisable
 12    which are not in conflict with this chapter.
 13        (bb) As  security  for the payment of the principal of and interest on any
 14    revenue bonds issued and any agreements made in connection therewith, to mort-
 15    gage, pledge, or otherwise encumber any or all of nonprofit  facilities,  eco-
 16    nomic  development  projects  or  agricultural facilities or any part or parts
 17    thereof, whether then owned or thereafter acquired, and to assign any mortgage
 18    and repledge any security conveyed to the association, to secure any loan made
 19    by the association and to pledge the revenues and receipts therefrom.
 20        (cc) To issue bonds for the purpose of financing all or part of the  proj-
 21    ect  cost  on any nonprofit facility, economic development project or agricul-
 22    tural facility and to secure the payment of the  bonds  as  provided  in  this
 23    chapter.
 24        (dd) To  purchase or sell by installment contract or otherwise, and convey
 25    all or any part of any nonprofit facility,  economic  development  project  or
 26    agricultural  facility  for such purchase price and upon such terms and condi-
 27    tions as this board of commissioners considers advisable which are not in con-
 28    flict with this chapter.
 29        (ee) To lease all or any part of any nonprofit facility, economic develop-
 30    ment project or agricultural facility for such rentals and upon such terms and
 31    conditions, including options to purchase, as the board of commissioners  con-
 32    siders advisable and not in conflict with this chapter.
 33        (ff) To  construct and maintain one (1) or more nonprofit facilities, eco-
 34    nomic development projects or agricultural facilities, provided that the asso-
 35    ciation shall not operate any nonprofit facility, economic development project
 36    or agricultural facility as a business other than as lessor, seller or lender.
 37    The purchase, holding and enforcing of mortgages, deeds  of  trust,  or  other
 38    security interests and contracting for any servicing thereof is not considered
 39    the  operation  of a nonprofit facility, economic development project or agri-
 40    cultural facility as a business.
 41        (gg) To act as the designated housing resource clearinghouse in the  state
 42    for matters relating to affordable housing.
 43        (hh) To coordinate the development and maintenance of a housing policy for
 44    the state.
 45        (ii) To  enter  into  agreements  or other transactions and accept grants,
 46    reimbursements or other payments, with the cooperation of the United States or
 47    any agency thereof or of the state of Idaho or any agency thereof  or  munici-
 48    pality of the state in furtherance of the purposes of this act, including, but
 49    not  limited  to, the development, maintenance, operation and financing of any
 50    transportation project and to do any and all  things  necessary  in  order  to
 51    avail the association of such aid and cooperation.
 52        (jj) To  borrow  money  and  issue  bonds  and notes or other evidences of
 53    indebtedness thereof as hereinafter provided to finance  transportation  proj-
 54    ects approved and recommended by the transportation board.
  1        SECTION  4.  That Section 67-6207A, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
  3        67-6207A.  ADDITIONAL POWERS. In addition to all other powers, the associ-
  4    ation also shall have the following specific powers:
  5        (a)  To make and publish rules respecting making mortgage  loans  pursuant
  6    to this act, the regulations of borrowers, housing sponsors, mortgage lenders,
  7    and the construction of ancillary commercial facilities.
  8        (b)  To  make rules respecting the qualifications for admission to housing
  9    projects pursuant to this act chapter.
 10        (c)  To invest in, purchase, sell, or to make commitments to purchase, and
 11    take assignments from lenders, of notes and  mortgages  or  other  obligations
 12    evidencing  loans  for housing projects, loans for nonprofit facilities, loans
 13    for economic development projects or loans  for  agricultural  facilities,  at
 14    public or private sale, with or without public bidding.
 15        (d)  To  make loans to mortgage lenders under terms and conditions requir-
 16    ing the proceeds thereof to be used by such mortgage lenders for the making of
 17    new mortgage loans for housing projects.
 18        (e)  To enter into mortgage insurance agreements with mortgage lenders  in
 19    connection  with  the  lending of money by such institutions for housing proj-
 20    ects.
 21        (f)  Subject to any agreement with bondholders or noteholders, to collect,
 22    enforce the collection of, and foreclose on any collateral securing its  loans
 23    to mortgage lenders and acquire or take possession of such collateral and sell
 24    the same at public or private sale, with or without public bidding, and other-
 25    wise  deal with such collateral as may be necessary to protect the interest of
 26    the association therein.
 27        SECTION 5.  That Section 67-6223, Idaho Code, be, and the same  is  hereby
 28    amended to read as follows:
 30    STATE AND FEDERAL GOVERNMENT. In addition to the  powers  conferred  upon  the
 31    association by other provisions of this act chapter, the association is empow-
 32    ered  to  administer  any  other  state, private or federal assistance program
 33    including without limitation  all  tax  credit  programs,  guaranty,  loan  or
 34    investment funds and block grants and to borrow money or accept contributions,
 35    grants  or  other  financial  assistance or investment from private sources or
 36    from the state or federal government for or in aid  of  any  housing  project,
 37    nonprofit  facility,  economic  development  project  or agricultural facility
 38    within its area of operation, to take over or  lease  or  manage  any  housing
 39    project,  nonprofit  facility,  economic  development  project or agricultural
 40    facility or undertaking constructed or owned by the federal government, and to
 41    these ends, to comply with such conditions and to make such trust  indentures,
 42    leases  or  agreements as may be necessary, convenient or desirable. It is the
 43    purpose and intent of this act to authorize the association to do any and  all
 44    things  necessary  or  desirable to secure the financial aid or cooperation of
 45    the state or federal government in the undertaking, construction,  maintenance
 46    or  operation of any housing project, nonprofit facility, economic development
 47    project or agricultural  facility by the association. The association is  spe-
 48    cifically  authorized to work with the Idaho department of agriculture in con-
 49    nection with any loan for an agricultural facility and the Idaho department of
 50    agriculture shall assist in the provisions of such loans.
 51        SECTION 6.  An emergency existing  therefor,  which  emergency  is  hereby
  1    declared to exist, this act shall be in full force and effect on and after its
  2    passage and approval.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 16964

The bill would amend the enabling legislation of the Idaho
Housing and Finance Association (IHFA) to permit the financing of
economic development projects through the issuance of revenue
bonds by IHFA.  No assets of the state will be pledged for
issuance of the bonds.  These amendments will permit the
financing of industrial, commercial, and other projects to
promote economic development throughout the state in partnership
with private financial institutions and state or local economic
development entities and will allow the pooling of loans for such
projects to save financing transaction costs.  Financing of these
projects will still be permitted to the extent available through
local issuers.  However, some areas of the state do not have
local issuers established to issue such bonds.  The amendments
would provide for a central, statewide point of contact for
issuance of bonds for economic development projects.   

                           FISCAL NOTE

No expenditure of state funds is expected as a result of these
amendments.  To the extent that additional economic development
results from the bonds provided for in these amendments, a net
benefit of additional tax revenue could be expected.

Name: Steve Rector, Idaho Housing
Phone: 331-4725

STATEMENT OF PURPOSE/FISCAL NOTE                         H 198